HB1444: relative to local regulation of digital mining.

HB 1444-FN - AS INTRODUCED

2024 SESSION

24-2590

10/08

HOUSE BILL 1444-FN

AN ACT relative to local regulation of digital mining.

SPONSORS: Rep. Potenza, Straf. 19

COMMITTEE: Commerce and Consumer Affairs

ANALYSIS

This bill adds limits to the regulatory powers of political subdivisions over digital asset mining businesses.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

24-2590

10/08

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Four

AN ACT relative to local regulation of digital mining.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Section; Local Land Use Planning and Regulatory Powers; Digital Asset Mining. Amend RSA 674 by inserting after section 16 the following new section:

674:16-a Digital Asset Mining Permitted.

I. A person or entity may have a digital asset mining business in any area in this state that is zoned for industrial use.

II. Any person engaged in-home digital asset mining or digital asset mining business shall not be considered a money transmitter under RSA 399-G.

III. A political subdivision shall not:

(a) Limit the sound decibels generated from home digital asset mining under a zoning restriction or site plan review regulation or local noise ordinance under RSA 31:39 or RSA 47:17 other than limits set for sound pollution generally.

(b) Impose any requirements on a digital asset mining business that is not also a requirement for data centers in such political subdivision.

(c) Rezone the area where a digital asset mining business is located without complying with applicable state and local zoning laws or rezone any area with the intent or effect of discriminating against any digital asset mining business.

(d) Limit the ability of a digital asset mining business to appeal any change in zoning or land use or commercial restriction pursuant to appeal procedures in any applicable state law or local zoning ordinance.

(e) Establish a rate schedule for digital asset mining that creates discriminatory rates for digital asset mining businesses.

2 Effective Date. This act shall take effect 60 days after its passage.

LBA

24-2590

11/24/23

HB 1444-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to local regulation of digital mining.

FISCAL IMPACT: [ ] State [ ] County [ X ] Local [ ] None

Estimated Political Subdivision Impact - Increase / (Decrease)

FY 2024

FY 2025

FY 2026

FY 2027

County Revenue

$0

$0

$0

$0

County Expenditures

$0

$0

$0

$0

Local Revenue

$0

Indeterminable

Indeterminable

Indeterminable

Local Expenditures

$0

Indeterminable

Indeterminable

Indeterminable

METHODOLOGY:

This bill adds limits to the regulatory powers of political subdivisions over digital asset mining businesses. The New Hampshire Municipal Association indicates, based on the information available, it is not possible to estimate the cost of the legislation on municipal expenditures. While some additional tax revenue may be generated as a consequence of the installation of crypto mines within industrial areas, it is possible that factors such as the sound generated by the mines and the barring of municipal action against the noise could lower property values surrounding a mine in such a manner as to offset or even exceed the additional revenue generated by the mine. Additionally, municipally-owned generators, such as those in Ashland, Littleton, Wolfeboro, and Woodsville, would see additional electric demand as a consequence of the installation of a crypto mining operation and may, due to their size and the additional demand, be unable to meet the demand needs, raising prices for electric ratepayers.

AGENCIES CONTACTED:

New Hampshire Municipal Association